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Add ERC: Non-transferable to EOA ERC20

Open aethercycle opened this issue 4 months ago • 2 comments

ERC-vTOKEN: Virtual Token Standard for Mathematically Permanent Liquidity

Summary This ERC proposes a novel token architecture where vTOKENs exist exclusively within smart contracts and liquidity pools, fundamentally unable to be transferred to externally owned accounts (EOAs). This standard establishes a framework for creating permanent, mathematically-enforced liquidity that is immune to removal or rug pull events, all while maintaining full ERC-20 compatibility for seamless protocol interactions.

Key Benefits

Mathematical Anti-Rug Pull: Eliminates the possibility of rug pulls by preventing the removal of initial liquidity, as vTOKENs cannot be withdrawn to EOAs.

Permanent Liquidity Depth: Ensures a continuously growing and unbreakable liquidity pool, as vTOKENs remain locked within designated contracts, fostering long-term stability.

Enhanced Trust & Security: Reduces reliance on trust in developers or centralized entities, as the liquidity mechanism is enforced by the token's core logic.

Seamless User Experience: vTOKENs automatically convert to their paired native tokens upon attempted transfer to non-whitelisted addresses, providing users with immediately usable assets.

Anti-Fragile Design: The system becomes stronger under pressure, as economic actions (e.g., conversions, protocol fees) contribute to the permanent locked liquidity.

ERC-20 Compatibility: Maintains the standard ERC-20 interface for balanceOf(), allowance(), and event emissions, allowing broad integration with existing DeFi tools and protocols.

Use Cases

Perpetual Decentralized Exchanges (DEXs): Creating liquidity pools where the vTOKEN side of the pair is permanently locked, ensuring a continuous trading environment.

Autonomous Treasuries: Protocols can convert a portion of their revenue into vTOKENs to build a self-sustaining and ever-growing permanent liquidity base.

Fair Launch Mechanisms: Enabling token distribution where the contributed funds are immediately and permanently locked as liquidity, providing instant and secure price discovery.

Non-Custodial Staking/Farming: Designing yield-generating protocols where underlying liquidity is mathematically secured and cannot be withdrawn by administrators.

Bonding Curves with Permanent Liquidity: Implementing token bonding curves where the acquired collateral forms a permanent, non-removable liquidity pool.

aethercycle avatar Jul 22 '25 14:07 aethercycle

File ERCS/erc-9999.md

Requires 1 more reviewers from @g11tech, @lightclient, @samwilsn, @xinbenlv

eip-review-bot avatar Jul 22 '25 14:07 eip-review-bot

The commit 77388be5660af42731b0c9b090e814d072d170df (as a parent of f5d9d10b56ed3d32135364410c8092a6a5f7abe0) contains errors. Please inspect the Run Summary for details.

github-actions[bot] avatar Jul 29 '25 10:07 github-actions[bot]